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Which of the following statements is most incorrect about inflation? Select one: a. Using historical average to estimate future inflation rate is likely to overestimate

Which of the following statements is most incorrect about inflation?

Select one: a. Using historical average to estimate future inflation rate is likely to overestimate the expected inflation rate b. Fixed-rate coupon bonds provide a good hedge against an unexpected increase in inflation rate c. Gold provides a good hedge against an unexpected increase in inflation rate d. TIPS provide a good hedge against an unexpected increase in inflation rate e. Inflation rate in Australia during the past 40 years has declined significantly.

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